March’s CPI inflation surprised positively in both year-on-year and month-on-month terms.
Poland’s consumer price index (CPI) rose by 0.1% month-on-month, compared to market expectations of 0.3%, and increased by 4.9% year-on-year, while the forecast was 5.1%.
Although both figures are higher than the previous readings, they are noticeably lower than expected, which could be another argument for the dovish faction of the Monetary Policy Council (RPP) to begin a cycle of interest rate cuts. However, it still seems unlikely that the first rate cut in Poland would take place before the presidential election.
Piotr Bawolski, CFA
Director of Strategic Clients, Michael / Ström Brokerage House
Source: CEO.com.pl
